Re: Should taxpayers subsidize hydro costs for mines?
No! An emphatic no.
While writer Jim Wentworth points out that Abacus will be paying US$16.5 million a year for power, what he doesn't mention is that they won’t be paying an additional $25.5 million a year for free power. We will.
If, as he says, KGHM Ajax (I wish they wouldn't keep changing their name), or Abacus is estimating a profit of $8 billion over 23 years ($347.8 million per year), perhaps they should pay for their own hydro costs and only make $322.3 million per year.
And if that's not enough for them to get by on, perhaps they should leave it in the ground until it gets more valuable.